Canadians have been able to take advantage of a flurry of initial public offerings over the past six months. Today, I want to look at three recent IPOs that I’m very excited about for the future. We have seen major success stories like Shopify, Kinaxis, and Canada Goose that debuted on the TSX during the 2010s. Investors should consider scooping up these stocks as we close out the month of March.
This recent IPO is gaining momentum
Nuvei (TSX: NVEI) launched its IPO on the TSX in September 2020. The company provides payment technology solutions to merchants and partners around the globe. Shares of Nuvei have increased 4.4% in 2021 as of mid-morning trading on March 31. The stock is up over 65% since its debut. Before the New Year, I’d suggested that millennials should stash Nuvei for the long term.
The company released its fourth-quarter and full-year 2020 results on March 10. Adjusted net income rose to $89.0 million or $0.84 per share — up from $22.3 million, or $0.33 per share, in the prior year. It managed to significantly bolster its global footprint in 2020. The payment technology solutions market is geared up for promising growth over this decade. Nuvei is one of the most exciting new IPOs to target ahead of April.
Why this TSX newcomer is worth adding today
Farmer’s Edge (TSX: FDGE) is a month-old IPO that made its debut on the TSX on March 1, 2021. This Winnipeg-based company develops digital agriculture solutions in North America and around the world. Its shares were down 2% in late-morning trading today.
The digital agriculture market is well positioned for strong growth in the 2020s. Brandessence Market Research recently projected that the global digital agriculture market would reach US$10.5 billion by 2027. It expects the market to more than double from its size in 2020. This is good news for Farmer’s Edge.
This week, the recent IPO released its last batch of 2020 results. Farmer’s Edge reported revenue of $45.9 million in 2020 — up 93% from 2019. The company bolstered its fiscal EBITDA loss by 37% and cash flow improved by 47%. Digital agronomy solutions revenue soared 214% to $11.7 million in the fourth quarter. Investors should look to get in on the ground floor after its March IPO.
One more IPO I’m excited about in 2021
The last IPO I want to focus on is an exchange-traded fund. However, this is no ordinary ETF. Purpose Bitcoin ETF (TSX: BTCC.B) is the first Bitcoin-focused ETF to be launched on a major exchange. Shares of this ETF have climbed 10% since its debut.
Bitcoin has rattled off record gains over the past six months. It soared past its original all-time high and peaked over the US$60,000 mark in March. This is already more than triple its previous record. As I’d discussed in previous articles, predicting the rise and fall of Bitcoin is folly. Top banks like Morgan Stanley and Goldman Sachs are set to offer Bitcoin ownership to high-net-worth clients. Bitcoin is firmly in the mainstream and has been bolstered by regulatory and institutional investor approval.
